The right to redeem property can take place after a foreclosure sale. This is referred to as the statutory right of redemption (since redemption rights after foreclosure is prescribed by state law). During the redemption period that exists in some states, the borrower has an additional opportunity to raise funds to purchase the home from the buyer after the foreclosure sale. In states with judicial foreclosures, the process is handled through the judicial system. In non-judicial foreclosures, the borrower signs a deed of trust or a mortgage with a power of sale provision, which permits the lender to initiate foreclosure without judicial proceedings. Typically, states with nonjudicial foreclosure rules do not authorize a redemption period after the foreclosure sale. Under Georgia law, a former property owner is not permitted to redeem the property after foreclosure has occurred.
When the right of redemption is in existence after a foreclosure, primarily in states that rely on judicial processes to execute the foreclosure, there are various factors that are relevant in determining the length of the redemption period. State law often sets forth the length of time for a redemption period. In some cases, statutes offer redemption periods that are based on a number of individualized factors. Some mortgages contain a clause that waives the borrower’s right to redemption, which can be exercised by the borrower. The period can be affected by the amount of debt that has already been satisfied or whether the homeowner has been deemed to abandon the property. In addition, if the lender pursues a deficiency judgment from the borrower to cover the difference in the amount between the sale price at foreclosure and the mortgage amount, then the redemption period can be prolonged.
Redemption after foreclosure is not a common occurrence since most homeowners do not possess the funds to execute the redemption. In general, the homeowner has to satisfy the full amount due under the loan, plus interest and fees, and the amount the buyer paid for the home in foreclosure plus interest and other expenses, such as property taxes and insurance. Due to the high costs of redemption after foreclosure, a homeowner who wants to salvage his home should not wait until after foreclosure to pursue potential remedies.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at http://www.markweinsteinlaw.com to find out how they can advise you.